ETHAMES GRADUATE SCHOOL

MANAGING CHANGE IN ORGANIZATION

UNIT 2
(GROUP F)

PROF. AREEBA ZAFER

04 January 2010

BY,
PIMIN POLEY
ETOLA 9459

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Contents:

Task Topic Page

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2.1 A
2.1 B 5

2.1 C 6

2.3 A 8

2.2 A 10

2.2 B 14

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2.3 B
Implementation Chart 18

Reference 22

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TASK 1 second part

Strengths of bureaucracy organization:

It has a hierarchy of authority; here there is a superior for every one up to the top
managers. Unity of command, this means each subordinate gets duties from one
of the supervisors and he or she is answerable to him or her only. There is
responsibility of job descriptions, there are specific rule and description for the
employees. There are defined managerial responsibilities, the responsibilities of
managers are clearly defined in writing. The other strength is
departmentalization, in a bureaucracy the organization is divided in departments.

Weakness of bureaucracy organization:

The time taken for taking a decision takes time. It is rigid to handle people and the
problems. The well intended rules and regulation may cause inconvenience and
inefficiency. Many workers pass the responsibility when a problem comes up.
Employees may not feel the job satisfaction because they are not involved in
decision making, but the take orders from there superiors.

The applicability of bureaucracy in today’s world.

Yes I do think it bureaucracy is applicable in today’s business world. Mainly because

many bureaucratic organization continuing to grow at a steady pace, such as Wal-
Mart and General Electricals. Secondly many organizations collapsed after
abandoning bureaucratic structure. Thirdly because the organizations are big and
the competition is fierce. These are the time when everyone has to work together to
attain success. But how will one work if he or she does not know whom to report to,
what all the rules he or she follow, what all are his or her responsibilities etc. In other
words it is more organized. I would also stand for the fact that when the powers are
distributed among employees, the work becomes easier. It is found that when one
feel that he or she is been noted by a senior there production moves up, this can be
attained by bureaucracy. In this competitive world there is no room for error. Majority
of decision taken in a bureaucracy is found to be successful since the decision
passes through many and then get approved. It also provide with a better inspection
of each department by the respective managers. This helps in maximising the output
of these individual. At the same time there is room for improvement for bureaucracy
too. In today’s world employees need new challenges. The employees get bored of
the same work. This need to be looked upon. In bureaucracy it should be made clear
of the fact, who will be responsible in case of a problem. The managers should be
given more power, this means they can take decision for them self than depending
on the senior most. This reduces the time consumption for decision making.
Employees should be provided to put forward their ideas and suggestions, this will
make employees more attached to the organizations and more ideas come up.
Lastly all the above said should be followed. If these are done, Bureaucratic
structure would be the best option for today’s business.

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2.1C

Task Ione first part but needs to be elobarated

Change is the only thing that does not change; it is very true with the UK
supermarket industry. There have been many significant changes that happened in
this sector. One among the many was the shutting down of Woolworth store.
Woolworth was a store specialised in gifts and other items, due to debts they had to
shut down. Being a budget shop, many people relied on Woolworth for their festival
purchases; this is estimated to be 1.3 billion. In this situation the supermarket
industry is in stiff competition to capture this 1.3 billion during this Christmas season.
The second major change in this industry came up because of the recession, an
economical factor. When the purchasing power of the people went down the
companies where forced to come up with products which the crowd was able to
afford during recession, a question of survival for the business. Store like Tesco,
Asda, came up with this. The same was done by Mark and Spencer too.

TAS ONE FINAL PART PLESES INCLUDE SOME THEORUES

There are many approaches that supermarket can take to develop their organization.
Some of the many are given below.

1. Opening small branches of the supermarket in the suburbs.

2. Internet purchase
3. Home delivery
4. Concentrating more on the local crowd.

Opening of small branches:

With this step the supermarket industry get more crowds from the suburbs. In these
areas majority of the business are done by the small local shops, due to the same
the fear of competition is comparatively less. This is because the purchasing power
of the supermarket is much more than the local shops.

Internet purchase:

In this busy world many find it difficult to find time for shopping, for them purchase
through internet will be of great help. When we look into the investment that is
needed to set up this facility is negligible compared to the benefits it’s going to
provide.

Home delivery:

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It is been found that majority of the purchases, i.e. glossary and other house hold
items are done by women. It is not easy for them to carry heavy load of luggage and
also they could be accompanied with the children. For these people a facility of
home delivery will be of great help, this also help in creating a better reputation of the
supermarket. To make this facility beneficial for the company, i.e. financially, a
condition should be made; home delivery will be done only for purchases above 30
pounds and within 2 mile radius.

Concentrating more on the local crowd:

Usually supermarkets are stocked with lots of items, but very rarely there is a
concentration for the local crowd. This saying goes true for the local crowd ‘water,
water everywhere no water to drink any where’. When the supermarket is well
stocked with the local communities needed goods, there is double the chance of the
organization becoming successful.

Comparison:

Opening of the small shops is expensive, but in the long run the supermarket can
expect better returns and higher market share. On the other hands implementing
Internet purchase is much cheaper and more profit compared to the investment.
Even though it is profitable, promotion of internet purchase is not advisable because
a customer tends to buy more items when he/she visits the store than on internet
purchase.

Home delivery and concentration on local crowds need is equally important, this will
enhance the customer satisfaction.

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2.3 A

Lidl is a supermarket chain of Europe having its chain of business in UK and in many
other parts of the world. It was established in Germany in 1930 as a grocery
wholesaler. Now Lidl has more than 380 stores in UK and EU.

To be successful in this competitive world, Lidl has to take new steps. The below
said are some among the many.

Better customer service, more organized arrangement of products, widening the

range of products, providing, concentrate more on local crowd, Introduction of self
checkout counters.

Better customer service:

It is been noticed that the customer care service of Lidl is poor compared to the
competitors like ASDA, Tesco and Marks and Spencer. This can be overcome by
providing training to the staff and by motivating them. After the above said follow up
should be done and the odd one outs to be warned or sacked, since one rotten apple
rote others in the basket too. The evaluation can be done by mystery shoppers etc.

Organized arrangements of products:

When the products of the same kind, i.e. like food items etc are scattered throughout
the store it is difficult for the customers to identify the location, with the proper
arrangement of the items within the store this discomfort for the customers can be
overcome. This also provide customers with a feel that more items are available in
certain department, i.e. in food, textile etc.

Widening the range of products:

With the competitors widening the range of products, its high time Lidl need to
implement the same. It is been found that Lidl lack many daily used food items like
ginger, curry leaves, and many other vegetables. This is a serious drawback, since
customers will be preferring purchasing from a supermarket where majority of items
are available. Diversification within the industry will be beneficial too. This can be
with introduction of new departments for electronics, cosmetics etc.

Concentrating more on local crowd:

Lidl has a lot of items but does it cater to the local crowds need? This is an important
question to be answered. Mostly the answer is no. Due to this issue, Lidl has lost
most of its local clients. By overcoming this issue, it is for sure that, Lidl can gain
major market share.

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 Introduction of self checkout counters:

Even though self checkout counters are there is some of the Lidl, many don’t have
the same. This result in overcrowding of customers and at time leads to quarrel and
issues between the staff and the customers. With the introduction of self checkout
counters in majority of the Lidl the issue can be overcome and also benefits the
customers to save there time. On the other hands Lidl also can save money on
human resource.

More concentration of local crowd

Better Customer Service Widened range of products Introduction of self checkoutOrganized
counters and Arranged Prod

Lidl become a powerful competitor or gain an edge over others.

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 Task 2 full

The best tool for involving the stake holders in the introduction of change will be
stakeholder analysis.

For this, the first question that needs to be answered is, who all are the stake holders
of Lidl are. Then the next is to find out who are the important stakeholders. The third
is to identify the influential stakeholders and the final to know who can disagree or be
against the plan. The details of the above said are provided below in the form of a
table.0

Important Stake Influential

Stake Holders Holders Stake Holders Threat
Employees Employees    
Share Holders      
Customers Customers Customers Customers
Owner Owner    
Supplier Supplier Suppliers Suppliers
Competitor Competitor Competitors  
Government   Government  
NGO      
Council      
Pressure
group( Environm
entalist etc)      
Financial
Institution Financial Institution    
Distribution Distribution  
Call Centre Call Centre    
       
Due to the limitation of words, only one change will be discussed. Concentrating
more on local crowd will be the step that will taken care of here.

In the above shown table all those who are in the first column are the stake holders
of the company, ie any one who has a role or interest in the organization. In the
second column are those who are important stakeholders, but why are they
important.

Employees:

If the employees are not aware of the goods that is needed by the customer, this
step will not bear the expected result.

Customer:

Customer is the king, even if we stock the entire shop with items of local crowd,
unless and until customers buy the items, they are dead stock.

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Suppliers:

The suppliers provide the stock that is the processed goods. Unless and until they
provide the stock the plan will only remain a plan, also if they provide bottle neck
supply, the result will be minimal compared to the expected.

Competitors:

The main reason for constant improvement is because of the competitors. They can
affect the organization, if they come up with the same plan or with a better plan, like
the same goods for cheaper price etc. For this reason they are considered important.

Financing Institution:

For a change like this, i.e. expanding the goods portfolio, money is a must. Unless
and until the organization doesn’t have the money, it is not possible to move forward.
The money could be from the retained profit, if it is not sufficient, then financial
institutions are the next option. This is the cause for considering them important.

Distribution:

Providing the purchased items to the door step of the customers is the new way of
attracting customers. If the distribution team do not participate in the expected
manner, then the strategy cannot be a success.

Call centre:

The customers usually call to enquire or to know about the new products available in
the store, unless and until the customer care is well aware of the same, they cannot
help the customers. This way the customer care is also important.

Influential Stake Holders:

Customers:

This is because, especially in United Kingdom, the law against discrimination is very
strict. If for any reason , an individual of any other community, or race or country
other than of the majority of the local crowd, file a case, then Lidl will have a tough
time. This also the reason for the threat.

Suppliers:

Every supplier will look of the profit; they will support those products which fetch
them better profit. The item which is in demand by the Lidl may not be a product
suppliers are interested in. This means they have an influence over this change. This
is also an issue of threat to the organization.

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Competitors:

They may keep a close watch on Lidl and will try to implement all the changes that is
done by the Lidl, so that they won’t lose in the race for profit.

Government:

The government is immensely powerful. If they feel that certain items should be
prohibited, then this could be a risk for the new strategy. If they feel Lidl is on the
way to become a monopoly then they can restrict any further development, this is
also another cause for considering them influential.

How the stakeholders are involved?

The employees will be provided with the knowledge of the new products, there rate
and the use. The positions of the new products for the local community will also be
explained to the employees.

For the customers, there will be free booklet distributed from door to door. The
advertisement of the newly arrived goods will also be placed in from of the store.
Announcement of the same will also be done inside the store for the customers. As
an introductory offer, the customers will be provided with 5% discount for all the
items for the first two weeks. This will attract customers to the store where by
providing better knowledge about the newly arrived goods. The issue of
discrimination can be tackled by providing the details of the other universal items
those are stocked in the store. If this is not satisfying the customer, the firm will have
to take help of the solicitor to resolve the issue.

Owners need profit and the good will of the firm. With the help of detail plan and the
expected result, it is for sure that owners will be interested in sanctioning a go for the
strategy.

If the organization is not able to find the supplier for the planed items, then either
the organization opt for direct import, or can ask those existing suppliers to include
these new items to their supply. Being an existing supplier, this addition will bring
new profit for his firm and he will be more than interested.

There will be routine check done on the items and the new offers put forward by the
competitors, this will enable Lidl to plan accordingly and if needed necessary
changes can be done to the strategies too.

A detailed explanation about the strategy and the benefits will be provided to the
financial institution, for which the organization needs money. If the bank or any

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other institution is not willing for this, the property of the organization can be
mortgaged for money.

Instead of salary, distributors will be provided with commission. This will enable
them to earn more and also they will be more interested in higher no of deliveries.
This not only benefits the distributors but also the organization by identifying the non
performers.

The call centre people will be informed about the new products in the company; this
will help the customer to get the details of the new range of goods.

Models of change task

des cibe

pdc

korters model

business process model

kayson model

six sigma

2.2 b

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Evaluation:

With the above said changes, I as a manager is happy with the

participation of the stakeholders. Majority of the major stakeholders
have participated in the system. Government was an exception in the
list of the major stakeholders since there is nothing that can be done
against the law and being way more powerful than the organization, it
was unable to have a good participation from the government.

Even after all these developments there are chances of failure if there
is any loophole in the system. Even though not evident, there are
chances of issues from the employees of Lidl, ie lack of knowledge
about the products, lack of customer support etc. This can be
overcome by providing batter training for the staff.

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2.3b

Implementation of plan:

To implement the plan (addition of goods concentrated on local

crowd) there 17 steps that need to be followed.

FIRST PHASE -3 weeks

Making of budget for the first phase.10 members -2 weeks =

7000pound

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This will be done by the facility manager. The budget expected to
occur for survey is, 7000 pounds. With reference to the budget, the
company will be paying 7 pound per hour for a member in the survey
group; they are expected to do the survey for 10 hours a day, which is
7 * 10 per member which will be 70.00 pounds per member for a day.
Company plans to conduct surveys on Monday to Friday in 2 weeks
which will be 10 days in total. So the expected expenditure will be 70 *
10= 700.00 pounds for 10 members per day. 700.00 pounds * 10 days
= 7000.00 pounds. Facility manager will be the responsible person for
the above said step.

Identifying the product needed by the local crowd.

The company will be sending 10 members to the local house hold to

conduct a survey on the goods that the crowd daily use and what good
they expect to be added to the Lidl product list. This process is
expected to take 2 weeks. Customer relation manager and store
manager will be the responsible who will be conducting this step.

Finalising the product that needed to be added to the store

After the survey it is then to finalize the products that are needed to
be added to the store, this will be done by Customer care manager,
Purchase manager, Store Manager.

Making a budget for the purchase of these items.

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After finalization it is time for making budget for the purchasing, this
will be done jointely by the Purchase manager, Finance manager,
since majority of the items are available on credit, and not much of
amount is need. Still as a contingency plan 2500.00 Pounds will be
kept aside, if at all there is a need for money.

Identifying the suppliers

After the 4 step in the First Phase , it will be identifying the supplier.
There will be many suppliers in the market, but the store will have to
get the supplier who will supply quality goods for reasonable price
and who is punctual in delivering the goods. This will be the
responsibility of Purchase manager, Facility Manager.

SECOND PHASE 2 weeks

Identifying and removing those items those are of less demand or of

no demand.

It can be noticed that there are items in the store that are of less
demand, these items eats up space , this space can be utilized for
storing and displaying items of better demand, this step will be
carried out by the Store Manager, Sales Manager.

Identifying space for storing the items

As the items increase there can be storage for space, this can be for
both storing and for displaying, there might be a need for expanding
the store or adding more racks for displaying inside the store, this is
the responsibility of Store Manager, Facility Manager.

Making a budget for renovation that is needed 4000 pound

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Making budget for renovation is the next step, it was noticed that the
store needed only racks and the need was of 10 racks. A single rack
costs 400 pounds, that means 10 racks will cost 4000 pounds. Since
going for bulk purchase discount will be available but in this case that
is not considered.

Implementing the renovation

Once the budget is set then it is responsibility of the Facility Manager

to implement the renovations.

Evaluating the renovation and if changes needed implementing.

Once the implementing the evaluation is over its then for the Facility
Manager, Store Manager to evaluate the implementation. If at all any
changes are to be done this will be done immediately.

THIRD PHASE 1 week

Placing order for the items

Now the suppliers have been identified, and the space for storage is
also set, now its time to place the order. This is the responsibility of
the Purchase Manager.

Passing information to the customer care.

Once the items have reached the store, then the customers care will
be provided with information about the new product, its quantity and
prices. This will be done by the customer care manager and the details
of the product will be collected from the store manager by the
customer care manager.

Educating staff about the new products.

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All the necessary items are now in the store and the customer care is
also aware of the new products, after this the staff will be educated
about the new product, its uses, where it is located, how it is to be
used etc. This will be the duty of the store manager.

FORTH PHASE 1 week

Making a budget on advertising 2000 pound

With the implementation of the entire above step the store is fully
equipped to welcome the new customers, now the next step will be
creating a budget for advertising. This is to be done by jointly by the
finance manager and by the marketing manager. 1000.00 pound will
be the expected budget for the advertisement.

Advertising about the new range of products.

Advertising is the next step that has to be done need to be done after
the budgeting for the advertising is done, this will be the
responsibility of the marketing manager, advertising will be done
through the leaflet distribution and through banners.

Evaluating of how far the organization was able to stick to the budget.

Even though there will be regular evaluation that will be conducted

with the matter concerning sticking to budget, it is important to find
out finally, how well the firm was able to stick to the budget. This will
be done jointly by Finance manager, Marketing Manager, Facility
Manager, Purchase manager, once after receiving the result , the
factors regarding the overlap of budget, if at all there is will be
discussed with the management and relevant steps will be taken to
ensure that the same mistake won’t happen again.

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Evaluating the sales.

When all the above said steps are over , then it time for evaluation of
sales, which is the key evaluation which gives the idea about the
success of the new change, this will be done by sales manager.

FIFTH PHASE 1 week

Taking customer feedback.

Customer feedback is important in a change which has customers as

the major stake holder. The level of satisfaction of the customers will
be evaluated with the help of customer feed back, this will be in the
form of small questionnaire filling. The person responsible for this
will be customer care manager.

If improvements are needed, based on customer feedback,

implementing the same.

If any room for improvement is noticed from the customer feedback,

then it will be the responsibility of Customer care manager, Store
manager, and purchase manager to see to it that these rectifications
are implemented.

Evaluating the sales.

The sales are again evaluated after the implementation of the change
by the sales manager to find out how far the implementation of the
change was successful.

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The entire implementation Phase is expected to take 2 months in
total, the details regarding the weeks are provided in the
Implementation chart below.

Implementation Chart

Activity Responsible Budget Time Of

Person commencement.

First Phase: Facility Manager 7000.00 pounds Week 1

Budget
Making

Identifying Customer relation Week 2

the product manager and
needed by store manager
local crowd

Finalising the Customer care Week 2

product that manager,
needed to be Purchase
added to the manager, Store
store Manager

Making Purchase 2500.00 pounds Week 3

budget for manager,
purchase Finance ,manager

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Identifying Purchase Week 3
the supplier manager, Facility
Manager

Second Phase: Store Manager, Week 4

Removal of Sales Manager
items of less
demand

Identifying Store Manager, Week 4

space for Facility Manager
storing the
items

Making Facility Manager, 4000.00 Pound Week 5

budget for Finance Manager
renovation

Implementing Facility Manager Week 5

the
renovation

Evaluating the Facility Manager, Week 5

renovation Store Manager

Third Phase: Purchase Manager Week 6

Placing order
for the items

Passing Store Manager, Week 6

information to Customer Care
the customer Manager
care

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Educating Store Manager Week 6
staff about the
new Product

Forth Phase: Marketing 1000.00 Pound Week 7

Making manager, Finance
budget on Manager
advertising

Advertising Marketing Week 7

about the new manager
range of
products

Evaluating the Finance manager, Week 7

budget Marketing
Manager, Facility
Manager,
Purchase
manager

Evaluating the Sales Week 7

sales Manager

Fifth Phase: Customer Care Week 8

Taking Manager
customer feed
back

If errors or Customer care Week 8

complaints manager, Store
are received manager,
rectifying the purchase
same manager

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Evaluating Sales manager. Week 8
sales

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What will the supermarket achieve after the implementation?

After the implementation I as a manager of the supermarket, Lidl

believe that more customers will be attracted, due to wider choice of
goods.

This will not only increase customer satisfaction but also profitability.

In will provide lidl with a competitive edge or at least can be an

equally strong opponent in the stiff competitive business sector.

It will give a new reputation for the supermarket, before it was

considered to be a store which deals in African food only, with the
implementation of the above change, the store will have a new
reputation for having global foods and items.

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Reference:

Barbara Senior, 2002, Organisational Change, 2nd edition, Pearson

Education Limited, England
Bernard Burnes, 2004, Managing Change, 4th edition Pearson Education
Limited, England

Boddy, D. and Paton, R. (2004) Responding to competing narratives: lessons

for project managers. International Journal of Project Management, 22, 231.

Bourne, L. and Walker, D. H. T. (2005) Visualising and mapping stakeholder

influence. Management Decision, 43, 650

http://www.bcs.org/server.php?show=ConWebDoc.14375
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